Forecasting the Bankruptcy Risk on the Example of Romanian Enterprises

Georgeta Vintila and Georgia Maria Toroapa
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Georgia Maria Toroapa: Academy of Economic Studies, Bucharest

Romanian Statistical Review Supplement, 2012, vol. 60, issue 2, 377-388

Abstract: The purpose of this paper represents the foundation of a score function, effective in the forecast of bankruptcy risk for companies in the Romanian economy. In order to achieve bankrupt / non-bankrupt discrimination in the econometric model, we have used relevant indicators regarding liquidity, indebtment and profitability. Based on the financial information for 2010, on a sample of 70 enterprises, we have developed an econometric model for the forecast of bankruptcy risk, subsequently tested on a new sample of 30 enterprises. The results achieved can form a landmark for Romanian enterprises in substantiating decisions, with the purpose to avoid financial failure.

Keywords: discriminant analysis; bankruptcy; forecast; financial ratios; score (search for similar items in EconPapers)
JEL-codes: C38 C52 G17 G32 G33 (search for similar items in EconPapers)
Date: 2012
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